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One of the biggest differences between a futures option and a futures contract is that

danby

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One of the biggest differences between a futures option and a futures contract is that

One of the biggest differences between a futures option and a futures contract is that

▸ the option limits the loss exposure to the price of the option.

▸ the futures contract limits the loss exposure to the price of the contract.

▸ an option can be traded on the secondary market, whereas a futures contract cannot.

▸ a futures contract can be traded on the secondary market, whereas an option cannot.

Textbook

Fundamentals of Investing

Edition: 14^th

Authors: Zutter, Smart

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oldgreyvlegs

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More solutions for this book are available here

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danby Author

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Thanks

Harvinder

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Helped a lot

Shuqin

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I appreciate what you did here, answered it right Smiling Face with Open Mouth

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